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The geopolitical and market bogeymen of the moment – Kim Jong Un, Vladimir Putin, tariffs, cyber warfare – are riding tall in the saddle.
That’s sparked something of a “flight to safety,” which ignited a bit of an uptick in demand for Treasuries this …

If targeting political extremes generates the most profit, then that’s what these corporations will pursue.As many of you know, oftwominds.com was falsely labeled propaganda by the propaganda operation known as ProporNot back in 201…

This weekend, I’d like to take a slightly nostalgic trip down Memory Lane, into the dark, swirling menacing pool that was the dawn of the Internet. OK, that sentence didn’t end up quite where I meant it to.

When I started my newsletter business in October of 2000, I decided to have a little fun with it on this new thing called the World Wide Web, aka “the internet.” If you, like me, are of a certain age, you remember well that we started every web address with the ubiquitous www.

WSJ: “Ten Years After the Bear Stearns Bailout, Nobody Thinks It Would Happen Again.” Myriad changes to the financial structure have seemingly safeguarded the financial system from another 2008-style crisis. The big Wall Street financial institutions…

It has been 2 months since I last had a chance to respond to reader comments. This seems like a good time to pause and take the opportunity to do so again. Keep them coming!

Today, since I’m in a contrarian mood, I thought I’d focus on ever-so-kindly replying to people who don’t see eye to eye with me…

I really enjoy these exchanges. They get my creative analytical juices flowing, and force me to consider alternative viewpoints which I may not have done initially.

In fact, the more rebuttals I write, the kinder I feel! Which is why I’ve decided to report a special gold opportunity today (continuing our prickly theme with an investment that is the very definition of contrarian right now).

If indeed this inflation hysteria has passed, its peak was surely late January. Even the stock market liquidations that showed up at that time were classified under that narrative. The economy was so good, it was bad; the Fed would be forced by rapid economic acceleration to speed themselves up before that acceleration got out…

Liquidity moves markets!

That could mean as much as a 7% gain from today’s gold prices, which would take gold all the way to $1,325-$1,350 by the middle of February. That’s right at the price I predicted gold would reach.

And now Bitcoin has fallen, dropping from $20,000 to under $12,000 in just five days. As Bitcoin prices slump, investors are finding profits in the world’s oldest currency, gold.

Here’s how high gold prices will rise, including a recap of gold’s price movement over the last week…

Gold Prices Continued Making Gains Last Week

The Fed’s rate hike on Dec. 13 boosted gold prices, but gold managed to build on those gains last week.

After ending the week of Dec. 11 at $1,256, the metal opened for trade on Monday, Dec. 18, at $1,259 and climbed as the U.S. Dollar Index (DXY) faced pressure. The DXY fell to a mid-morning low of 93.50, from which it recovered to 93.7. Gold then ran up to a $1,263 peak at 11:00 a.m., eventually closing at $1,262.

Urgent: Executive Editor Bill Patalon just saw something on his precious metals charts he’s only seen twice in 20 years. He calls it the “Halley’s Comet of investing” – and it could lead to windfall profits. Read more…

Tuesday would see gold move sideways as the dollar clawed back to 93.7 by late morning. The yellow metal opened strong at $1,263, but then backed off on the dollar’s strength to a 1:00 p.m. low of $1,259. As the dollar backed off to 93.45, gold regained a couple of dollars to end at $1,261.

On Wednesday, gold moved sideways even as the dollar took another dive. The DXY sank to 93.17 at mid-morning. Gold opened at $1,266, and with low volatility closed at $1,265 as the dollar recuperated to 93.35.

Here’s a chart of the past week’s DXY action.

Thursday’s early morning news that the final estimate for Q3 U.S. economic growth was revised down to 3.2% from 3.3% had little effect on gold. The metal opened for New York trading at $1,264, but climbed as the DXY peaked at 93.5 at 8:00 a.m. then sold down to 93.3 by 1:00 p.m. That action help to lift gold to close at $1,266.

Friday’s action brought more strength for gold, even as the dollar regained some strength. Gold opened at $1,268 but shot to $1,276 by 1:00 p.m., even as the DXY peaked at mid-morning at 93.49. The dollar index then retreated to 93.3 by 5:00 p.m., and gold held most of its gains to close at $1,275.

The Christmas holiday meant the next trading day would be Tuesday, Dec. 26. And as the dollar exhibited further weakness, gold climbed higher. The yellow metal opened at $1,281 and by mid-day was trading at $1,283.

But gold’s gain on the week is just the start. I’m predicting that we’re only in the beginning stages of a new gold price rally. Here’s where I see gold prices heading next…

My Prediction for the Price of Gold in 2018

Conventional wisdom holds that rising interest rates weaken gold prices, but that’s not borne out by the evidence.

Now that the Fed’s latest rate hike is a done deal, let’s look at the dollar.

Like I said last week, the dollar looks to be forming a textbook head-and-shoulders technical price pattern. The next movement for the DXY could be down to the 91.5 level. The 50-day moving average looks to be topping, and both the RSI and MACD are confirming a downward bias.

As for gold itself, we have the rally I had expected would come as the Fed announced another rate hike mid-December. Have a look:

Interestingly, this rally has quickly pulled the gold price back above its 50-day moving average of $1,276, and it’s being confirmed by both the RSI and MACD momentum indicators.

It would not surprise me to see my $1,350 target taken out much faster this time, possibly by the end of January.

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Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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